Syracuse, N.Y. -- Upstate Medical University is spending millions of dollars to contract out for temporary medical and clerical help, physicians, security and other services without adequately justifying the need, according to an audit (or read audit below) released today by the state Comptroller’s Office.

A sample of 50 contracts totaling $149 million reviewed by auditors found Upstate, which is part of the State University of New York, did not sufficiently document the need for 38 of the contracts. The auditors also found Upstate did not periodically reassess such contracts. Such scrutiny is especially important given the state’s severe financial problems, the audit said.

“In the absence of such analyses, we question whether contracting out for certain services was necessary and cost-effective,” the report said. “Based upon our review of Upstate’s efforts to scrutinize service contract spending, we believe additional savings opportunities may be possible.”

In a written response to the audit, a SUNY official agreed with the report’s recommendations, but disagreed with some of its comments and conclusions.

The audit questioned Upstate’s use of temporary staff. Upstate told auditors using temporary staff provides flexibility because these workers are only used when needed. The audit, however, found 24 temporary staffers worked or were expected to work continuously for one year or longer in the same assignment. One temporary worked half-time for more than three years in the same assignment, the audit said.

“We believe that Upstate should periodically analyze whether hiring state employees on a part-time or per diem basis is more appropriate than continuing long-term assignments of temporary contract staff,” the audit said.

The audit recommended Upstate routinely justify in writing the need for services and periodically assess all contracts to identify opportunities to defer, eliminate , reduce or bring these services in-house.

In a written response to the audit, Monica Rimai, SUNY’s senior vice chancellor, said Upstate managers routinely review contracts as part of the annual budget process as well as any contracts that come up for renewal.

“Upstate has taken, and will continue to pursue, opportunities to limit or reduce its expenditures,” Rimai said in her letter. “... Upstate has weathered budget cuts and mandatory cost increases and has proven its fiscal responsibility by staying within budget.”

She also said there are no state regulations requiring Upstate to prepare documentation for every management decision to contract out services.

State Comptroller Thomas P. DiNapoli said that while preparing documentation is not mandated by law, it is good business practice.